Irish funds industry passes €2trn milestone in ‘record breaking year’

By: Gary Robinson | 27 Feb 2017

The latest set of data released by the Central Bank of Ireland for 2016 showed record levels of assets and net sales in Irish-domiciled funds, as well as record levels of assets in non-domiciled funds administered in Ireland.

The data, announced earlier today via a statement from Irish Funds, that assets in Irish-domiciled funds ended the year at a record €2.1trn. Record levels of net sales across all fund types at €139bn – the highest in seven years since this data became available – were also posted.

Assets of non-domiciled funds administered in Ireland also passed the €2trn milestone, bringing the total value of assets under administration to €4.1trn.

More than 14,000 people work in financial services across Ireland, the majority based in the financial district in Dublin. Since the Brexit vote, the figure has slowly increased with more companies looking at a potential move away from London, in a bid to remain within the Eurozone and protect access to European ‘passporting’ rights.

Ireland has been seen as particularly appealing for US firms and other firms, that have traditionally been based in London, as they would be able to relocate and retain an English-speaking workforce.

Hong Kong Shenzhen Connect

The posting of record figures follows, as reported, the announcement of enhanced access to Chinese investors with the award of a RQFII quota of RMB 50bn (€7bn) and the opening of Hong Kong Shenzhen Connect to Irish-domiciled funds.

Although best-known for UCITS funds, in the alternative investment funds marketplace, Ireland also services more than 40% of hedge funds globally and more than 50% of all European ETFs.

“These latest figures represent another significant milestone for the Irish funds industry and the managers we serve,” said Pat Lardner, chief executive of Irish Funds, said that the results reflect the “consistent and continuing attractiveness of Ireland”, as the third largest investment fund location globally.

‘Compelling’

“By working closely with the Irish government, the Central Bank of Ireland and the wider funds community, we have built, and continue to develop, a location which is highly competitive and whose regulated funds offering is one of the most compelling globally,” said Lardner.

In the five years between 2011 and 2016, the net assets held in Irish domiciled funds has doubled; an increase aided by year on year increases in the number of funds (including sub funds) locating in Ireland, the statement added.

Head of Video and Ezines at Open Door Media Publishing.
An experienced journalist and filmmaker with more than 20 years' financial services experience, both as journalist and originally as a fully qualified IFA, Gary works across both International Investment and InvestmentEurope titles. Previous video production credits include projects on BBC, C4 and SKY.